Going for Broke: Getting Back on Your Feet

by 48 Minutes | Monday, May 22, 2017 | 475 views

Well-dressed businessman with empty walletEver had that experience where your friends called and said to meet up at a restaurant for dinner, and you had to pause and think what excuse you could come up with without letting them know that you couldn’t afford it? And it wasn’t exactly the Four Seasons.

Being broke is tough. All those feelings of regret and embarrassment, those awkward situations you’d sooner live without. There is a way back from your situation, no matter how hopeless and desolate it may seem. Here are some ideas.

Live within your means

Working for minimum wage means you’re only one mistake away from disaster and desperation, so if you decide to buy a brand new car you’re walking on thin ice. More than half the money you make may go to car payments; you’ll have transportation, but probably not enough money to gas it up.

Always remind yourself to live way below your means; saving money and only spending on what you need. If you need a car, find an affordable used one and keep driving it until it can’t run anymore. By the time it gives up on you, you’ll have plenty to buy a new one. The lesson is to save, save, save.

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Move back in with your parents

Depending on your relationship with them, you might be able to ask them a huge favor — and that’s getting your old room back. It may be a huge blow to your pride, but think of it this way: You can save on rent and maybe even food, and that’s no small thing when you’re broke. You can always find your own place as soon as you get back on your feet, financially.

File for bankruptcy

Osmond and Cockayne Associates recommends finding a bankruptcy attorney in Sandy and talk about your options. This is a last ditch attempt to get out of the hole you’re in. It may feel jarring, even depressing at first, but there is no shame in doing it. When you file for bankruptcy, the collections stop. It will take a long time, but you can eventually nurse your credit back to health. A financial adviser or your lawyer may also help you with that.

People are never prepared to go broke; that’s probably why it happens. What counts is how you face it, and how much you learn from the experience so you may never let it happen again.

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